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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 10991
Experience:  I have been practising for 30 years.
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False information by pearl assurance rep regarding interest

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false information by pearl assurance rep regarding interest only mortgage
Can you explain your situation in detail please?What you want to know about it? You have not asked a question.
Customer: replied 2 years ago.
re interest only morgages.people including myself were told that money would not need to be paid until house was sold.iam fortunate i put past money to pay but people i have spoken to that has an interest only mortgage were under the understanding that it would be after sale as long as you continued to pay the mortgage.as far as i am concerned this was a misselling practice with words over the country there must be hundreds missold contracts.
Customer: replied 2 years ago.
this was carried out by an agent forpearl assurance
The situation with regard to interest only mortgages is changing by the day.When these were taken out, the situation was that there was always a date at which the loan would need to be repaid and it was always clearly stated in the mortgage offer that the borrower needed to take out a repayment vehicle to pay the mortgage at the end of the term sell the property.These were never open-ended. If the representative told you that you could have this for ever and continue to pay interest for ever until such time if you sell the house, then you have a claim for mis-selling provided you can prove that.Although some lenders were originally taking quite a robust line with regard to borrowers having to repay interest only mortgages, the government and the Financial Ombudsman and the Financial Conduct Authority have instructed the lenders to take a more lenient line with this and where possible, to extend the term. As a result, whereas some mortgages would finish at age 70, some lenders are now allowing interest only until aged 90.Mis-selling claim apart, which you might want to pursue separately, you may find that negotiating with your lender to extend the term will pay dividends.Meanwhile, you might want to instigate a mis-selling claim in respect of the interest only mortgage.Can I clarify anything for you?Please don’t forget to rate the service positive. It’s an important part of the process by which experts get paid.Best wishesFES
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